Panasonic Corporation is accelerating its investment in Central and Eastern Europe (CEE) with a planned 20 billion yen (€145 million) investment in its Czech Republic factory by the fiscal year ending in March 2026. This strategic move aims to expand the production of air-to-water (A2W) heat pumps, which are seeing a surge in demand across Europe due to their eco-friendly advantages over traditional fossil fuel-based heating systems.

A2W heat pumps harness heat from the air to provide efficient heating while significantly reducing CO2 emissions, aligning with Europe’s push towards sustainability and cleaner energy solutions. As the shift from gas and other fossil fuels to electrification intensifies across Europe, Panasonic is responding with expanded local production capacity at its Plzen facility, Panasonic AVC Networks Czech (PAVCCZ), which has been manufacturing A2W indoor units since 2018.

This latest investment will enable Panasonic to begin producing outdoor units in addition to the indoor units already being made at the Czech plant. By the fiscal year ending in March 2026, Panasonic aims to boost its production capacity to 500,000 A2W units annually, meeting growing demand across the European market. This expansion will further solidify its role as a key player in the heating, cooling, and ventilation (HVAC) market within the CEE region, including Czechia and Poland.

Panasonic’s A2W heat pumps are designed with cutting-edge technology that maintains heating performance even in low outdoor temperatures, making them ideal for the European climate. In addition to its manufacturing efforts, Panasonic has also launched an IoT-based maintenance service in Denmark and continues to expand its sales and distribution network throughout Europe.

The investment in the Czech facility not only strengthens Panasonic's industrial presence in CEE but also underscores the company's commitment to sustainable innovation and meeting the region's growing demand for green energy solutions. This move presents opportunities for Panasonic to establish new partnerships with distribution partners in Poland, Czechia, and other key CEE markets as it continues to grow its HVAC business.

By enhancing its production capabilities in the Czech Republic, Panasonic is poised to play a significant role in the transition to more sustainable heating technologies in Europe, contributing to both environmental goals and regional industrial growth.